Tax Upgraded

(Posted 9-Mar-2009)

iPayroll has been updated for the tax changes coming into effect from 1-Apr-2009.

We have upgraded the iPayroll web site to correctly calculate tax from 1-Apr. When you process a payroll, the correct tax calculations will be automatically applied - following the specifications published by Inland Revenue.

The income threshold for the 21% tax rate has been increased from $40,000 to $48,000 and the top tax rate (for income over $70,000) has been decreased from 39% to 38%.
Secondary tax code thresholds and extra pays rates and thresholds are also changing.
There are new tax codes (ME and ME SL) to cater for the new Independent Earner Tax Credit (IETC).
There are a number of KiwiSaver changes. Details are available on your Home Page.

The new Income thresholds and rates will be as follows:-

Current rates		New rates from 1-Apr-2009
Income to $14,000	12.5%	Income to $14,000	12.5%
$14,001 - $40,000	21%	$14,001 - $48,000	21%
$40,001 - $70,000	33%	$48,001 - $70,000	33%
$70,001 and over	39%	$70,001 and over	38%

For further details see Changes to personal income tax on Inland Revenue's web site.